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What does this feature do?

Growth assumptions allow an input metric’s value to increase or decrease each month within the financial model at a custom rate that you define when there is no specified target value in mind.

Why should I care?

Growth assumptions are the easiest and most familiar way that both business owners and investors conceptualize financial model behavior. Using growth assumptions throughout your financial model implies that you expect different aspects of your financial model to change (grow or decline) over time.

Where can I find it?

The growth assumption is able to be added to any input metric present within any section of the assumptions page of the financial model.

How should I use it?

Growth assumptions should be added to input metrics that you expect to change in a consistent manner over time. For example, if you expect to draw in a larger number of leads to your website each month you would add a growth assumption to your “inbound leads/top of funnel” input metric within that customer acquisition strategy which would effectively say, “My beginning value of X leads per month will increase by X % each month”. This would mean if you had 100 leads the first month with a 10% growth assumption, the second month you would now draw in 110 leads and the month after 121 leads.

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